Cheap Car Insurance for College Students and Graduates

May 15, 2018

College students face many big challenges, like living in a new area, finding a job, and studying for classes. On top of all that, it can be a real pain trying to balance out your finances like living costs, gas money, and insurance. None of these are easy tasks, but we can help with at least one. We’ve created this guide to finding cheap car insurance for college students so you can focus on your other tasks (and have some extra money in your pocket too).

How to Find Cheap Car Insurance as a College Student

Buying affordable car insurance for college students is certainly a concern, but it’s rarely a top priority. Many young drivers under 25 get a policy from the same insurance company that their parents use. Some go online and get a quote or two from different car insurance companies. But what’s the best car insurance for college students?

Car Insurance Policy Check-Up

If you are still on your parent’s car insurance policy, make sure you are a listed as a driver. If not, you may not be covered in the event of an accident.

If you get good grades, you may be able to reduce your premium. Many auto insurance companies now have a good student discount that can be applied if you maintain a B or above in all of your classes.

Make sure you are assigned as the primary driver of the car you drive to school.

If you have your own policy, make sure your insurance policy reflects where you live and where you park the vehicle. Your address may be a variable that insurance companies use to price policies, plus having it updated makes submitting claims more efficient.

If you do not take the car to school, your parents can update the policy to reflect the change in how often the vehicle is being driven and how far. It might even lower car insurance premium since you’re driving less. Many insurance companies refer to this as a distant student discount and require that the college student attends school at least 100 miles away from home.

Check the limits on collision, comprehensive and liability coverages. Colleges are densely populated with inexperienced, new drivers. Thus, accidents are more likely to happen. Checking your coverages in these areas will help ensure that you have the appropriate coverage if an accident occurs.

Theft of vehicles and personal items from within vehicles is more common on and near college campuses. Be sure to avoid leaving valuables in vehicles parked around campus. And, of course, always lock your vehicle.

Best Auto Insurance Companies for College Students

Unfortunately, there is no one absolute cheapest insurance company for college students and drivers under 25. However, there is a simple solution: shop around. Every insurance company doesn’t calculate risk the same way, which means prices are different from company to company. Do your homework and get multiple quotes. But who’s got time for that? We can help you expedite your search with a single form that will give you multiple quotes at once. You can compare prices side by side, lock-in your best rate, buy and be done.

What About After Graduation?

If you’re a recent college graduate, what can you do to get a good deal on car insurance when getting your own car insurance policy? The first thing is to make sure that you have a good credit score. A good credit score can get you a better rate on car insurance. Be sure to keep your score up too by paying bills on time and paying overdue debts. Paying off your credit cards will help you to maintain your current insurance price. On the other hand, falling behind on payments can hurt your credit score. If you get too far behind, your insurance carrier might choose not to renew your policy when your policy expires.

Bundle Your Car Insurance Policy with Other Policies

You may have several insurance policies such as auto, renters and perhaps life insurance. One way to find the cheapest auto insurance policy is to bundle these policies. Bundling is when you buy multiple types of insurance together from the same insurance company. It could not only decrease your auto insurance premium but the premium for your other insurance products as well. Leaving you one less bill to worry about.

Understanding What Coverage Limits You Need

As a recent college graduate, you may not be in the position to run out and buy a new car. Some get a new car from mom and dad, but not many. If you plan on driving your current car for a few years more, take a closer look at the coverage levels. If the car has a few scratches and dings, it might be worth raising the deductible or dropping comprehensive coverage.

Be careful though, because while you can save money by changing coverage levels and deductibles, you can also get yourself into a tight spot if you don’t have money put aside to deal with any issues that might arise.